What are the incentives given by government to the industries set up in hurry, backward and rural areas?
What are the incentives given by government to the industries set up in hurry, backward and rural areas?
Incentives given by the government to the industries set up in hurry, backward and rural area are as follows:
Land: Every state offers developed plots for setting up of industries. The terms and conditions may vary. Some states don’t charge rent in the initial years, while some allow payment in instalments.
Power: Power is supplied at a concessional rate of 50 per cent, while some states exempt such units from payment in the initial years.
Water: Water is supplied on a no-profit, no-loss basis or with 50 per cent concession or exemption from water charges for a period of 5 years.
Sales Tax: In all union territories, industries are exempted from sales tax, while some states extend exemption for 5 years period.
Octroi: Most states have abolished octroi.
Raw materials: Units located in backward areas get preferential treatment in the matter of allotment of scarce raw materials like cement, iron and steel etc.
Finance: Subsidy of 10-15 per cent is given for building capital assets. Loans are also offered at concessional rates.
Industrial estates: Some states encourage setting up of industrial estates in backward areas.
Tax holiday: Exemption from paying taxes for 5 or 10 years is given to industries established in backward, hilly and tribal areas.
Incentives given by the government to the industries set up in hurry, backward and rural area are as follows:
Land: Every state offers developed plots for setting up of industries. The terms and conditions may vary. Some states don’t charge rent in the initial years, while some allow payment in instalments.
Power: Power is supplied at a concessional rate of 50 per cent, while some states exempt such units from payment in the initial years.
Water: Water is supplied on a no-profit, no-loss basis or with 50 per cent concession or exemption from water charges for a period of 5 years.
Sales Tax: In all union territories, industries are exempted from sales tax, while some states extend exemption for 5 years period.
Octroi: Most states have abolished octroi.
Raw materials: Units located in backward areas get preferential treatment in the matter of allotment of scarce raw materials like cement, iron and steel etc.
Finance: Subsidy of 10-15 per cent is given for building capital assets. Loans are also offered at concessional rates.
Industrial estates: Some states encourage setting up of industrial estates in backward areas.
Tax holiday: Exemption from paying taxes for 5 or 10 years is given to industries established in backward, hilly and tribal areas.
